
Net income: Net income is the total earning of the company and is calculated by the addition of all the revenues and subtracting all the expenses of the company.
Equity investment: An investment made in shares and is held to earn some income in the form of dividends and
Unrealized holding gains and losses: An unrealized gain is a profit recorded on paper results from the investment. It occurs when shares prices increase after investor purchases it, but an individual has to sell it, till the time it is not sold the amount of increase in share price is recorded as an unrealized gain.
An unrealized loss is a loss recorded on paper results from the investment. It occurs when shares prices decrease after investor purchases it, but an individual has to sell it, till the time it is not sold the amount of decrease in share price is recorded as an unrealized loss.
(a) To determine: To determine the net income or net loss.
Given information: All the information related to L Company is provided in the question document.
(b) To prepare: To prepare the record unrealized gain or loss.
Given information: All the information related to L Company is provided in the question document.

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Chapter 17 Solutions
Study Guide Intermediate Accounting, Volume 1: Chapters 1 - 14
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